Mason Hawkins

Mason Hawkins

Last Update: 2014-08-14

Number of Stocks: 27
Number of New Stocks: 1

Total Value: $18,812 Mil
Q/Q Turnover: 2%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Mason Hawkins Watch

  • Mason Hawkins' Longleaf Funds Q1 2013 Letter

    We are pleased with our strong start to 2013. All four Longleaf Funds outpaced our absolute annual return goal of inflation plus 10% in the first quarter. Both the Partners and Small-Cap Funds posted double-digit performance. The Partners and International Funds also outperformed their respective indices over the last three months.

    Stock prices increased faster than values over the last three months. As price-to-value ratios (P/Vs) and portfolio weights rose, we trimmed a number of holdings. We sold several companies that approached our appraisals. Cash levels increased as few new qualifiers met our requisite discount. Not surprisingly, with an S&P return double that of EAFE, we are finding more opportunities in companies based outside the U.S.  


  • Mason Hawkins Chops Madison Square Gardens as MSG Sells LYV

    In his trade on March 11, 2013, Mason Hawkins, chairman of Southeastern Asset Management, reduced his Madison Square Gardens Company (MSG) position by 40.36%, bringing his current shares to 2.6 million. The current price for MSG is $55.95 with a 0% change from average. The Mason Hawkins’ holding history of MSG shows that he began unloading MSG in the second quarter of 2012 as the quarterly average price was going up. See MSG’s 10-year valuations here.

      


  • Mason Hawkins and Gurus Ditch Gravel

    On March 6, 2013, Mason Hawkins, chairman of Southeastern Asset Management, reduced his shares of Martin Marietta Materials (MLM) by 21.96%, with his current shares now at 4,362,121. The current price of MLM is $104.7, with a change from average of 3%. Since December 2011 Martin Marietta Materials has attempted to buy out Vulcan Materials Company (VMC), first making a hostile takeover bid of $4.8 billion for VMC at $36.69 per share, followed by an unsolicited offer of $5.5 billion in May 2012 at $42 per share. According to the Birmingham Business Journal, Vulcan Materials got an injunction blocking Martin Marietta Materials from pursuing a hostile takeover. The Vulcan position was that the MLM offer undervalued the company and was too optimistic about the possible merger benefits. Time will tell if MLM will offer a higher price in a friendly takeover.

    Meanwhile, it looks like many investor Gurus are unloading aggregates and basic materials companies MLM and VMC for now. Gurus Ray Dalio and John Griffin sold out their MLM shares in December 2012, and Steven Cohen reduced his MLM by 96.44%. In the last quarter of 2012, investor Gurus Bruce Kovner, Jim Simons and Tom Russo sold out their stakes in VMC. Currently, Steven Cohen has only 8,744 shares of his VMC stake after his reductions in third quarter 2012. Here’s an in-depth analysis of Vulcan Materials Company.  


  • Mason Hawkins, DELL Shareholder Shakeup

    Shareholder opposition grows as computer maker Dell Inc. (DELL) defends its planned leveraged buyout at $24.4 billion. In his latest trade on March 5, 2013, major DELL stakeholder Mason Hawkins, Chairman of Southeastern Asset Management, reduced his DELL shares by -0.13% at the average price of $13.5 that day, as reported in the latest 13D filings by Mason Hawkins. Hawkins now owns 146,612,358 shares, about 8.4% of the company. The stock price has changed by 0%. See Dell’s 10-year here.

    Coinciding with the reduction, Southeastern Asset Management repeated its earlier charge that DELL had placed management's interests above those of shareholders. The company criticized Dell for allegedly refusing to comment on the proposed buyout or provide investors with the results of certain segments from last year.  


  • Mason Hawkins of Longleaf Partners' 2012 Annual Report

    We are pleased to report that each of the Longleaf Partners Funds' 2012 returns exceeded our annual goal of inflation plus 10% and outperformed its relevant benchmark index. We also posted strong fourth quarter gains in all three Funds. Our business appraisals, combined with the quality of our companies and our management teams, anchor our investment decisions and provide the foundation for our confidence that market prices will reflect corporate worth over time. At the outset of 2012, we highlighted the investment cases and free cash flow yields of the Funds' largest holdings, noting that we were "highly confident future returns should be exceptionally rewarding because of the quality of the businesses we own, their prospects over the next five years, and the compellingly low prices we are paying for them." Over the year, intrinsic values built, and the gap between prices and values started to close.

    Most holdings posted solid 2012 returns. The largest contributors were among our most disdained in 2011. In particular, our cement and aggregates companies illustrated why conservative business appraisals, not short-term price movements, should dictate investment decisions, as these stocks sharply rebounded without improvement in global GDP growth or overall industry volumes. In the third quarter of 2011, when macro fears about global growth and sovereign debt caused stocks to tumble, cement companies were among the worst performers as the timing of a construction rebound grew more uncertain. We did not know when infrastructure, housing, and commercial building investment would turn, but we felt confident that over five years, our companies' unit sales and pricing would improve. We could adopt a longer time horizon because we had a meaningful margin of safety in the discount placed on cement plants and rock quarries – they sold for far below replacement cost and recent comparable sales. Had we waited for more certainty about recovery and less recession fear, we would have missed the 66-90% gains in our core cement holdings and 30+% appreciation in our aggregates companies over the last year as prices moved to more fully reflect asset values.  


  • Mason Hawkins Buys More Dell While Opposing the Deal

    The future of the Dell (DELL) deal is looking dimmer as its largest outside investor Southeastern Asset Management buys more shares while openly opposing the deal. Southeastern Asset Management bought almost 17 million shares in the past weeks. It now owns 146.8 million shares, which is about 8.5% of the company. Southeastern Asset Management has openly opposed the Dell deal, which is led by Michael Dell and plans to buyout other shareholders at $13.5 a share. Southeastern Asset Management said that the deal “grossly undervalued the company,” and believes that Dell is worth $24 a share, according to Barron’s.

    Southeastern Asset Management has been a long-term holder of Dell, and started buying the stock when it was trading at above $30. Its average cost is estimated to be above $25. If the deal went through at $13.5, Southeastern would have lost almost 50% of its original investment, excluding dividends.  


  • Mason Hawkins' Southeastern Management Contests Dell Takeover Price as 'Woefully Inadequate'

    Mason Hawkins of Southeastern Asset Management, which has a sizable position in Dell (DELL), has joined several other fund managers in a chorus of contention about the proposed takeover of the company by CEO Michael Dell and private equity firm Silverlake. This letter was filed with the SEC on Feb. 8:  


  • Southeast Asset Management 2012 Annual Letter

    We are pleased to report that each of the Longleaf Fund's 2012 return exceeded our annual goal of inflation plus 10% and outperformed its relevant benchmark index. We also posted strong fourth quarter gains in all three Funds. Our business appraisals, combined with the quality of our companies and our management teams, anchor our investment decisions and provide the foundation for our confidence that market prices will reflect corporate worth over time. At the outset of 2012, we highlighted the investment cases and free cash flow yields at the Funds' largest holdings, noting that we were "highly confident future returns should be exceptionally rewarding because of the quality of the businesses we own, their prospects over the next five years, and the compellingly low prices we are paying for them." Over the year, intrinsic values built, and the gap between prices and values started to close.

      


  • Longleaf’s Mason Hawkins Chops Off More Than Half of Potlatch Stake

    The tree-growing, timber-selling wood products manufacturer, Potlatch Corp. (PCH) will now see less of Southeastern Asset Management, the adviser to Longleaf Partners Funds.

    The investment team, led by CEO Mason Hawkins, has reported selling more than 1.4 million shares, or 51.59 percent of its stake in Potlatch, according to GuruFocus Real Time Picks.  


  • Hawkins’ Southeastern Asset Management Decreases in LINTA and VMC

    Earlier this month, mutual fund company Southeastern Asset Management, where investing Guru Mason Hawkins serves as CEO and chairman, has reported three transactions. Apart from declaring itself the largest shareholder of Saks Inc., it also sold some of its shares in two stocks: Liberty Interactive Corp. (LINTA) and Vulcan Materials Company (VMX).

    Southeastern Asset Management, which is the adviser to Longleaf Partners Funds, decreased in Vulcan by 18.47 percent on Dec. 5, and then reduced in Liberty Interactive by 43.41 percent five days later, according to GuruFocus Real Time Picks.  


  • Longleaf’s Mason Hawkins Decreases DineEquity Inc. Shares

    As of Nov. 27, Mason Hawkins of Tennessee-based Southeastern Asset Management, which is the adviser to Longleaf Partners Funds, has reported a 10 percent decrease in his stake of franchising company DineEquity Inc. (DIN), according to GuruFocus Real Time Picks.

    Reducing more than 310,000 of his shares at an average price of $62, this is Hawkins’ fourth stake reduction of DineEquity since acquiring the stock in the third quarter of 2008. Starting off with about 3.2 million shares in the beginning of his holding history, Hawkins now has a shareholding of 2,798,762.  


  • Longleaf Partners Comments on Chesapeake Energy

    Chesapeake (CHK) gained 2% in the quarter and rose39% from its low point in May. The substantial governance changes we discussed in last quarter’s report not only lifted the stock, but also improved the prospects for more conservative capital allocation going forward. The company announced $6.9 billion in asset sales during the quarter and anticipates approximately $2 billion more this year. In spite of the company’s progress, the stock was down 14% YTD. Although the natural gas price moved up in the quarter, it remains below the marginal cost of production for most plays. Natural gas also impacted CONSOL,which was flat in the quarter but down 10% YTD.Continued switching to cheap gas has pressured coal prices, and CONSOL owns both natural resources. The supply/demand imbalance should self-correct as natural gas drilling has declined substantially in response to low price, and demand has increased at electricity plants. Longer term demand from industrial plants, LNG exports,and conversion of trucks to this clean and abundant energy source would support an increase in natural gas prices and a higher value for both Chesapeake and CONSOL.

    From Longleaf Partners' Q3 2012 Report.  


  • Longleaf Partners Q3 2012 Report



  • Mason Hawkins Adds Shares of Vail Resorts

    Mason Hawkins has increased his stake in Vail Resorts Inc. (MTN) by 0.67 percent, according to GuruFocus Real Time Picks. The Southeastern Asset Management founder and value investor added 24,000 shares in the transaction, which raised his total position size from 3,565,758 shares to 3,589,758 shares. It also boosted his ownership stake in the company to 10.1 percent.

    Hawkins purchased the shares on Oct. 10, when the share price closed at $57.48. The stock is up 32% year to date and down 2% for the past five years.  


  • Chesapeake CEO Aubrey McClendon Discusses Oil, Natural Gas and the Future of Chesapeake Energy

    Chesapeake Energy (CHK) is a pretty significant investment for well-known value investors Mohnish Pabrai and Mason Hawkins/Staley Cates at Longleaf Partners. The company has recently undergone some corporate governance improvements and major asset sales that are improving its balance sheet.

    CEO Aubrey McClendon discusses (with Cramer) the changes at Chesapeake, the future of the company and the state of the energy market in North America.  


  • Longleaf Partners Q3 Letter to Shareholders



  • Mason Hawkins of Longleaf Partners Interview with GuruFocus

    Mason Hawkins is chairman and chief executive officer of Longleaf Partners, an investment advisory firm with $34 billion in assets under management. He recently took investing questions from GuruFocus readers. Here are his responses:

    Investment Philosophy  


  • Longleaf Partners June 2012 Semi-Annual Report

    Includes a discussion of Chesapeake Energy (CHK), Dell (DELL), Cemex (CX) and Berkshire Hathaway (BRK.A)(BRK.B):

    Long Leaf 2012 Semiannual  


  • Mason Hawkins of Longleaf Funds Answering Investing Questions Now

    GuruFocus welcomes renowned investor Mason Hawkins for an interview in which he will be answering readers’ questions. To ask your question, post it in the comments section below.

    Mason Hawkins is chairman and chief executive officer of Southeastern Asset Management Inc., an investment advisory firm with $34 billion in assets under management. At Southeastern, he and his team seek to achieve long-term absolute returns with minimum risk in their portfolio of 18-22 businesses, focused on their best ideas.  


  • Longleaf Partners Second-Quarter Letter from Mason Hawkins

    Broad uncertainty about economic growth – in the U.S., China, and most prevalently in Europe – weighed down global stock markets over the last three months. The S&P 500 was down 2.8%; the Russell 2000 lost 3.5%; and non-U.S. markets took a bigger hit as EAFE declined 7.1%. While the Small-Cap Fund appreciated in the quarter, Partners and International declined. These results reversed the relative standing of each Fund for the year-to-date, leaving Small-Cap ahead of the Russell 2000 but Partners and International behind their benchmarks.Within the indices and Southeastern's portfolios, stocks tied to broad economic expansion such as commodities,materials, and industrials suffered. However, most of our holdings' appraisals grew or were little changed, because our models already assumed slow growth over the next few years and revenue declines in Europe through 2014. With the recent market schizophrenia, we trimmed holdings that had approached their values or become overweight. Conversely, as certain stocks declined relative to their appraisals, we added, as did a number of our management partners. We also identified a few new qualifiers, primarily in names we have previously owned, where we typically have a deeper knowledge.

    Portfolio Discussion Norms
    Volatile quarterly performance often accompanies concentrated investing. Over Southeastern's almost four decades, the twenty or so positions we have owned at any given point have fallen into three categories in client discussions. The first are those holdings that are rarely mentioned because their gains make them obvious winners such as DirecTV (DTV), FedEx (FEDX), DineEquity (DIN), tw telecom (TWTC), Fairfax (FFH), or Vodafone (VOD) today. Most names fall into the second category, which also receives little attention. These companies generally are meeting operating expectations, but their stocks have not appreciated significantly. The large majority of discussion focuses on the third category, the few names that are in the penalty box at the time either because of real or perceived business challenges or management issues often highlighted in headlines. We expect and welcome discussing holdings that are most out of favor. We think it is important, however, to put those names in the context of what is normal within our investment approach. We will not be right on every investment. Over the long run if we are right on two-thirds of our picks, and wrong without losing substantial permanent capital on the other third, we can achieve our inflation plus 10% goal as long as we adhere to our margin of safety discipline. Given portfolio discussion norms, we will not elaborate here on Disney, Travelers, Abbott, Texas Industries, tw telecom, Vail Resorts, Scripps Networks, and Henderson Land – the largest contributors to second quarter performance. Instead, we review the recent events, investment case, and broader lessons from our most controversial name. Although Chesapeake Energy is only in the Partners Fund, its recent visibility has generated discussions with shareholders across the three Funds.  


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